BIEM(002832) 北京商报· Bei Jing Shang Bao·2025-05-14 13:44Core Viewpoint - The company "Biyin Lefen" has experienced a decline in net profit for the first time since its listing in 2016, indicating challenges in its operational performance and the need for new growth strategies [2][4][6]. Financial Performance - In 2024, Biyin Lefen reported a revenue of 4.004 billion yuan, a year-on-year increase of 13.24%, while net profit was 781 million yuan, down 14.28% [4]. - The downward trend in net profit continued into 2025, with Q1 revenue at 1.286 billion yuan, up 1.41%, and net profit at 331 million yuan, down 8.47% [4][6]. Cost Structure and Marketing - Marketing expenses surged significantly, with sales expenses reaching 1.613 billion yuan, a 22.96% increase, and advertising costs rising by 108.11% to 196 million yuan in 2024 [5][8]. - In contrast, R&D expenses saw a substantial decrease, with growth at only 1.8% in 2024 compared to 23.89% in 2023 [5][8]. Market Position and Challenges - Biyin Lefen targets a high-end demographic, primarily affluent middle-aged individuals, but is facing market saturation and competition in the niche golf apparel sector [6][7]. - The golf apparel market in China is relatively small, with a total market size of approximately 3.626 billion yuan, and Biyin Lefen is encountering challenges in sustaining growth within this limited market [7]. Strategic Initiatives - The company is attempting to diversify and modernize its brand by targeting younger consumers, including updating its logo and engaging younger celebrities as brand ambassadors [9][10]. - Biyin Lefen has also expanded its portfolio by acquiring international luxury brands CERRUTI 1881 and KENT&CURWEN, aiming to broaden its business beyond golf apparel [9][10]. Future Investments - Plans are in place for a significant investment of up to 2.3 billion yuan to develop a fashion industry headquarters in the Bay Area, which will include various facilities aimed at enhancing its operational capabilities [10].